Online Financial Tips

Archive for July, 2011

If you want a risk-free investment, you will be advised to put your money in government bonds. However, does this hold true all over the world? So the bond might come with a printed promise saying that it is backed by the government but how much weight would that hold?

The thing is to estimate the risk. In you were to buy government bonds in a country where the political situation was volatile to say the least, then does the ‘risk-free’ really apply? Investing in a high-risk country might mean profits at times for those who do not mind taking the gamble but for an investor, there is really no place he can go to or appeal in case of any default in payments.

So let’s take a look at where you should put your money if you want the low-risk investment with returns that are moderate. Let’s look at the bonds issued by the US treasuries. These really give you the lowest risk when it comes to investments – there’s never been a defaulted payment to date and it is doubtful whether it will happen in the future either. It is backed by the fact that it the government that issues this bond which can collect taxes or inflate the currency in order to see that the actual repayment cost gets lowered.

You have a wide choice when it comes to these bonds. You have Treasury Bills and you can get them in various maturity periods and interest or coupon rates. They are auctioned on Mondays and $1000 is the minimum purchase price. The ones with the 52-week maturity are sold once every four weeks. The 13 week and the 26 week bills have their interest paid when they mature while the 52 week one has the interest paid half way and at the maturity date.

Then you have Treasury Notes which can be 2, 5 or 10 years and these too are sold at a minimum of $1000. The interest for these is paid twice a year.

Treasury Bonds are also priced at $1000 but they have a maturity period of 3 years and you can buy them in February, August and November. The interest is paid every six months.

How can you calculate the yield? You get this by dividing the interest rate by the price (current). So a $1000 bond paying $46 interest a year is $46/$1000 = 0.046 = 4.6%. The coupon rate is a given but the face value of the bond can change so you could get a different rate each time.

If you are not a risk taker and you like the comfort that a risk free investment gives you, look at government bonds – you’ll be glad you did.

Debt consolidation quote is the first step in your journey towards a life without any kind of debt problems. It is a proposal that describes various options before you when you decide to move in the direction of a financially free life. A lot of people all around the world live with this kind of dream. However, to turn it into a reality, you need to select a debt consolidation plan carefully.

Absolutely Free

The best part of the story is that you can get a debt consolidation quote without paying any money at all. It really helps because anyone who is already in debt would not like to spend any money in exploring various options. Free availability of quotes allow you to keep on comparing until you come across the most suitable one in your case.

When you perform a systematic research, you will realize that it is not only the rate quoted by any lending institute but you need to look for several other factors also. Interest charges, payoff fees and any upfront fees has to be considered cautiously. Moreover, also make sure that there are no hidden costs associated with these services.

Advantages

The central idea of debt consolidation is to merge all current debts into a single bigger loan with lower interest rate. Not only it cuts down the cost of borrowing but it also makes debt management easier. Dealing with only one lender once every month is definitely more convenient than coping up with several lenders.

However, bear in mind that there is no use doing all this exercise if you are unable to save any money. Best debt consolidation quote is one that offers a solution that brings down both interest charges and monthly installment to a considerable extent. Therefore, do not make any decision in haste. There is no need to panic at all. You are not going to miss the train by spending an additional day in carrying out the organized study. Instead, you might end up saving few hundred extra dollars.

When the government wants to raise money, they can issue bonds and borrow money from the people.

Sleep disorders even if they are only temporary can have an adverse effect on your life. There are many things that keep you up at night. If you have been sick or stressed out about something you may find yourself lying awake at night unable to sleep. And while you are lying there you can’t stop thinking about how tired you will be in the morning. When morning comes you are indeed tired and probably irritable. You aren’t quite as attentive as you usually are. Your overall mood is down and the thought of getting some sleep haunts you.

What if you felt this way every day?

Sleep apnea sufferers feel that way all the time. They never get that truly deep sleep because they never reach the sleep stage known as REM. When you get out of the bed in the morning you feel terrible as if you didn’t sleep at all and you really didn’t.

If you have read about sleep apnea you know how the health risks involved. The most frightening is the increased risk of heart disease. Your heart is being damaged by the lack of oxygen which could lead to a heart attack. There are also other health risks such as diabetes and gout.

But it can also have effects on your emotional state. It is difficult to have a positive outlook on life if you are so tired. Your energy level is low, so you can’t do everything that you would like, which makes you more depressed. Your memory becomes poor and your decision making process is hampered. In my own case I have had all the problems described above. One thing that has helped me is writing about sleep apnea and doing research on it. I continue to look for ways reclaim my sleep.

You can now have passive, positive cash flow from rental properties while eliminating all management worries!

The key is a land trust. This might not sound exciting, but it is the lynch-pin of this amazing new System.

Start with a piece of investment property, one you own (maybe can’t sell?) or run out and buy one. Even if you pay full retail, this System will generate a positive cash flow and a nice profit.

Then advertise the property for sale to a selected target market: those who can’t or won’t qualify for bank financing.

FOR SALE, SELLER FINANCING!

There is a “shadow market” for real estate consisting of self employed people, small business owners etc. who would rather undergo a frontal lobotomy than submit to the bank’s investigation process.

And there are those who simply have stinky credit!

These are Motivated Buyers. They have the capacity and desire to buy your property, but they cannot or will not go through the hassles of getting bank qualified.

You’ll give them their chance of a lifetime, to buy property with small upfront cash with No bank hassles! They will gladly pay you 10-20% more than your property’s Fair Market Value.

You don’t have to pay off your mortgage since the property is in a land trust.

You take 5-10% cash deposit upfront, or a car or speed boat. You make the rules, you da Bank!

Your buyer makes mortgage payments to you that are higher than your payments by several hundreds of dollars per month since his payments are based on a higher price and you’ve added a point or two to the rate on account of the fact that you want to!

We have found that Motivated Buyers are so grateful for the opportunity you have given them, they will not object if you politely suggest splitting future appreciation of the property, as long as they are using your mortgage. “Equity Sharing” has a fair sounding ring to it.

Let’s see the results:

You have become a banker!

1. You have “sold” your property for a nice gain, recouping most of the cash you put down.

2. You receive passive income every month

3. You receive your profit in a lump sum when the new buyer refinances or sells the property

4. You will also receive your share of the appreciation, if any

Example:

Single Family House*, FMV $200,000 (that you can’t rent for enough to make money on!)

Mortgage, $180,000 @ 6.5%; $1132/mo

Sell for $240,000

Mortgage $220,000 @ 8.5%; $1,680/mo

You also get 25% of the appreciation above $240,000, if any

You put $20,000 into your pocket and collect $548 per month!

If the buyer sells after 7 years, you will have made:

$20,000 upfront (no taxes due!)

$548/mo for 84 months or $46,032 (partially tax sheltered)

Assuming no appreciation, you get none. If there is 5% annual appreciation, your share would be $15,900

Also about $2,109 in net principal reduction.

That is a total of $69,273 with no appreciation, $85,173 with.

*Note, if you have a multi-family property, the trust allows you to sell each unit separately, skyrocketing your profit. If it is a vacation property, you can sell Timeshares!

All this with no tenant, toilet or trash headaches! These “burdens of ownership” belong to the owner living in your property. So do the advantages; like writing off mortgage interest and real estate taxes, a land trust exclusive benefit.

And you don’t owe any income taxes on your gains! The IRS says that as long as the property’s title remains in trust, the sale is “incomplete” and therefore the tax liability cannot be ascertained. When your buyer sells, you do a 1031 exchange.

OK, someone will ask, what happens if the new owner stops paying? Well, despite the fact that he is “the owner,” another quirk in the trust law gives you the right to put him out in 30 days, just like an ordinary tenant! No time consuming, expensive foreclosure!

You now have a System for producing passive income with no hassles that you can use, “Cookie Cutter” fashion, anywhere in the country!

It depends entirely upon the debt consolidation company that you choose to deal with, of course, but what most debt consolidation companies do is take your application for a debt consolidation loan and ask lending institutions to bid on lending you the money. The debt consolidation company makes money when you make a loan from one of the lenders who work through them.

Most debt consolidation companies offer free debt consultation. A counselor is assigned to each applicant. The counselor will call the applicant and talk to him or her by phone. When the counselor has gleaned all of the knowledge that he needs about the applicant and his or her debt situation, the counselor can often negotiate with the credit card companies to get the interest stopped as well as the harassing phone calls and demanding letters.

The counselor will work with the applicant to determine what the maximum payment amount the applicant can make each month. The counselor will also work with the applicant to establish a workable budget that the applicant and his or her family can reasonably be expected to live with over the period of several months or years while the debt is being paid off.

The counselor will also obtain the applicant’s credit reports. The counselor will make these credit reports available to the lending institutions that he will be contacting on the behalf of the applicant. (This prevents too many credit inquires for the applicant. Multiple credit history inquires raise red flags for lenders, and in this case there will be only one.)

The counselor will then send out your information to several lenders. The lenders will review the application and credit history. Some of the lenders may call the applicant on the phone. Each lender will make an offer to the applicant and the applicant can choose the offer that will best suit his or her needs.